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Suppose a company incurs the following costs:

Labor $400

Equipment $300

Materials $100

It owns the building so it doesn't have to pay the $800 in rent.

a. What is the total accounting cost?

b. What is the total economic cost?

c. Explain why these are different in this way.

I am having so much trouble with figuring this out. If you could please help, I would greatly appreciate it. Thanks

Labor $400

Equipment $300

Materials $100

It owns the building so it doesn't have to pay the $800 in rent.

a. What is the total accounting cost?

b. What is the total economic cost?

c. Explain why these are different in this way.

I am having so much trouble with figuring this out. If you could please help, I would greatly appreciate it. Thanks

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